Prudential Value Range Marketing

Prudential Value Range Marketing (Frequently Asked Questions)

What is Value Range Marketing?

Prudential Value Range Marketing, (PVRM) is an innovative new way to market real estate, which removes the need to set a fixed asking price for a property. Traditionally, Sellers have listed their homes at a fixed sale price, usually above the true market value. Because Sellers tend to ask more than they ultimately are willing to accept, buyers may not request to see the property until there is a price change. They may be very interested in the property but would be concerned that they might offend the seller with their offer. Rather than look at the property and make an offer, they may choose to wait for a price change. With Prudential Value Range Marketing there are no price changes to wait for. The Seller agrees to entertain offers in the range at which the property is being offered. There are 80 pre-set overlapping ranges established by Prudential.
The goal of Value Range Marketing is to entice more potential Buyers to inquire about the house, and to encourage more offers on the home by opening negotiations much sooner than with the fixed price process. Research has shown that, even if listed at true market value, on average, fixed price listings may only be seen by 40% of the potential Buyers. PVRM is designed to encourage inquiries from all of the qualified Buyers.

Won't Buyers Only Make Offers At The Low End Of The Range?

No. What PVRM does better than any other system is allow the market to determine the true value of a home. Buyers will make their offers based upon how much they really want the home, how many other buyers might have interest at the same time, and how much they think the home is worth, based on comparable properties for sale. Remember, the idea is to attract more Buyers, and to start the negotiating process earlier.If Buyers do not go to see a property because they are put off by the fixed asking price being offered, there is no possibility of an offer. The Buyer and Seller will most likely go through the common process of counter offers, but provided both sides have some flexibility they should reach a price and terms that are agreeable to both parties.

Does PVRM Affect The Time To Achieve A Sale?

Yes. The average time to sell PVRM listings is significantly lower on average than fixed price listings. Agents in the Prudential Real Estate Affiliates network have experienced reductions as much as 20% of the average time for fixed price listings.

Is The Seller Saying That They Will Accept Any Offer Within The Range?

No. The seller is saying that they will judge the merits of an offer when presented, and will make some type of a counter offer. Please remember that a Seller takes more than price into consideration when considering an offer. Examples would be, the settlement date, is the offer contingent on anything such as financing, inspections etc. It is very important to remember that the listing price is the price at the upper end of the range, very much like a fixed price. The difference is that from a marketing point of view, PVRM addresses in writing what Buyers are actually thinking. This is why the concept has been so successful. Remember, you are the ultimate decision maker and will determine at what price your home will be sold.

Does PVRM Only Benefit Sellers?

No. In fact, Buyers like PVRM as much as Sellers do. They get an opportunity to see more houses suited to their needs, so they have a better pulse on what s available and what comparable properties are worth. PVRM makes Buyers feel more comfortable about making an offer on a home. Many Buyers do not want to run the risk of insulting a Seller with an offer that the Seller may think is completely unreasonable. With PVRM, for the first time, the boundaries where positive negotiations can take place are clearly defined. Buyers know exactly in what range they can open negotiations and know that the Seller will not be offended.

Is PVRM Used In Other Places?

Yes. The concept of PVRM was first developed in Australia about 5 years ago, and is now in common use there. The program is widely used throughout North America by Prudential Real Estate Affiliates, which have over 1,200 offices and 35,000 Sales Associates.

This Sounds Great !! I Would Like To Sell My Home And Talk To A Prudential Agent About PVRM Or My Option Of Listing At A Fixed Price. Who Should I Call?

Prudential Regency Real Estate can be reached at 1-800-848-9870 or E-mail: relocate@pruregency.com

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The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange of the Lehigh Valley Association of REALTORS Multiple Listing Service. Real Estate listings held by brokerage firms (licensees) other than Prudential Regency Real Estate are marked with the IDX logo and detailed information about them includes the name of the listing brokers. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.